Powergrid to mop up Rs. 400 crores

NEW DELHI, MAY 14. State-owned Powergrid Corporation is planning to mobilise up to Rs. 400 crores from the domestic market for funding its various on-going and new transmission projects.

The corporation would seek an approval for the same at its board meeting likely to be held by the end of this month.

After the approval, the company would hit the domestic market in June, Powergrid officials said.

Powergrid would use the entire amount to fund its various on- going projects including the Sasaram transmission project and other inter-regional and load dispatch transmission plants, the officials said.

They said that part of the funds would also be used to fund the Rs. 7,000 crore Talcher transmission project in Orissa.

Powergrid is likely to incur a total expenditure of Rs. 2,000 crores for its transmission projects during the 2000-01, out of which 20 per cent (about Rs. 400 crores) would be mopped up through internal resources while 50 to 60 per cent from multilateral lending agencies such as the World Bank and Asian Development Bank, they said.

The corporation is planning to raise the money at an interest rate of 12 to 13 per cent, the officials said.

Asked about the company's move to raise $100 million from the overseas market, the officials said that the corporation had already got an in-principle approval from the Government for the same.

Asian Development Bank had agreed to stand guarantee for the money to be raised from the overseas market and necessary details are being worked, they said.

The corporation, which is the only public sector transmission company in the country, is planning to set up a separate joint venture transmission company for entry of private sector transmission companies on a project-to-project basis. Powergrid would invite private bids for its Tala transmission line.

Powergrid would invite bids for the project next month and an approval from the board is likely to be sought by the month end, the officials said.

The corporation has estimated a total Rs. 13,000 crore investment during the Ninth Plan and is likely to scale down the investment target by Rs. 2,000 crores owing to the slow pace in the coming up of various power projects, the officials said.

- PTI

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